Location: State College, PA | Metro: State College, PA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $277,990 | 0.46% | F |
| 3BR | $1,660 | $323,557 | 0.51% | F |
| 4BR | $1,700 | $461,711 | 0.37% | F |
U.S. Census Bureau data (2024)
14.6% of Centre Hall, PA's residents are renters, indicating a moderate demand for rental properties in ZIP 16828. The $1170 Fair Market Rent (FMR) for zip FY 2024 highlights the subsidized rental threshold set by HUD, which is slightly higher than the $1,163 market rent reported by the Census Bureau's American Community Survey. This suggests that the local rental market is competitive, with subsidies potentially offering a buffer against market fluctuations. The median home value stands at $334,861, providing a benchmark for property values in the area. With a median income of $76,468, tenants in Centre Hall have the financial capacity to cover both market rents and potential Section 8 rents, assuming they meet other eligibility criteria. The lack of data on days on market (DOM) and the percentage of price-cut shares indicates stability in the housing market, without significant evidence of overpricing or prolonged vacancy periods. For landlords and small-portfolio investors, the alignment between the FMR and market rent presents an opportunity to engage with the Section 8 program while maintaining a reasonable income stream. Given the figures, Centre Hall appears to be a viable location for Section 8 participation, balancing market conditions with federal guidelines.
The $1170 FMR is a critical figure for landlords considering the Section 8 program, as it represents the maximum rent that can be charged to eligible tenants. This amount is just above the $1,163 average market rent, suggesting that landlords could still receive a rent close to the market rate when participating in Section 8. The $334,861 median home value underscores the overall economic health of the area, supporting the likelihood of a steady tenant pool. With a median income of $76,468, tenants are likely to have disposable income beyond their rent payments, reducing the risk of default. The Section 8 program offers a predictable rent payment structure, which can be advantageous in a stable market environment such as Centre Hall, where there is no indication of excessive days on market or frequent price reductions.
Based on the provided data, Centre Hall, PA is a suitable market for Section 8 investments. Landlords can expect to receive a fair rent that aligns closely with market rates, while benefiting from the program's support mechanisms. The verdict on Section 8 for Centre Hall is positive, given the balance between market conditions and federal rent standards.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.